Hypothesis Testing Equation from Subtraction Capital
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ABCDEFGHIJKLMNOPQRSTUVWXYZ
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Sample ARedSample BBlue
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Action (eg clicks)1,542Action (eg clicks)333
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Sample Size20,47281%Sample Size4,65319%
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Average Rate7.53%Average Rate7.16%-5.0%
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Z ValueConfidence
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0.00050%
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0.98070%
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1.44085%
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Z =0.9621.64590%
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1.96095%
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Confidence69.6%2.57599%
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Interval3.29099.9%
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So if you ran this test 100 times
69.6%
of the time you would have the same winner as this time
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Original Source: subtractioncapital.com/blog
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Disclaimer: Best used in consultation with Paul Willard (Paul@SubtractionCapital.com). Seriously though, this is provided as an example of my work but I make no warrants that it or any application of it is correct, so if you choose to use a copy or form of this for your own work, please do so by your own choosing and at your own risk.
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Binomial Distribution
Continuous Distribution
Derived Equation
Z table